Elżbieta Bieńkowska,Member of the Commission. – Madam President, honourable Members, five months after the lifting of UN, EU and US economic sanctions in return for the implementation of Iran’s nuclear-related commitment, it is really timely to debate the impact of the Joint Comprehensive Plan of Action (JCPOA) on the relations between Iran and EU businesses. This is really important.

Let me first of all stress that the lifting of sanctions was a key element of the nuclear agreement and an effective implementation of the sanctions lifting is a condition for sustainability and success of the plan. It is in our interests, and Iran can reap the economic benefits of it. It is undeniable that we are at a very critical juncture where we need to make sure that all remains on track during the visit of the High Representative and seven other commissioners, including myself, to Tehran in April. We could witness the domestic debate in the country about the merits of the plan, and international engagement is still vital.

Successful implementation of the deal is also a key here in the EU. The EU continues to be closely engaged, including through the High Representative’s coordinating role of the Joint Commission overseeing the implementation of the deal.

Let me assure you that we have faithfully met our commitments, as agreed under the plan of action, by lifting the sanctions and publishing guidance on implementation day, providing clarity on the subject. But we have also engaged with the private sector to provide clarity and reassure operators wanting to go back to Iran.

Let us be clear, there are still challenges we need to overcome. The financial and banking issues we are experiencing should not be underestimated, but they should be put into perspective. Iran has been isolated from the world economy for more than 10 years. Iranian banks have been cut off from the international financial system for the same period of time. We have always known that the full reintegration of Iran into the world economy would not happen overnight, but I am confident it will succeed. There are other elements that banks take into consideration in their assessment: the full and correct comprehension of the scope of US sanctions, as well as Iran’s banking regulations and anti-money-laundering and counter-terrorist financing controls.

We are engaging very actively on both fronts: the EU with the Member States has been holding regular consultation with Washington since 16 January this year; the US has updated twice its guidance, publishing additional frequently asked questions. This has demonstrated ongoing commitment to provide clarity to business operators and to keep the guidance a living document. We also invited the Director of the Office of Foreign Assets Control to inform our finance ministers and encourage him to further reach out to the private sector. In addition, we are planning to hold a symposium in Brussels on the lifting of sanctions for business operators, with contributions from both EU and US experts.

In the same spirit, the High Representative chaired a ministerial meeting on 19 May 2016 with the Foreign Ministers of Germany, France, the UK and US. The release of the joint statement on post-JCPOA business with Iran was a clear signal to reassure financial operators and to encourage them to engage with Iran.

Let me also take this opportunity to share with you how appreciative we are of the US efforts to provide clarity about the scope of the remaining US primary sanctions and to reach out to the banking sector in Europe. In addition, it is important that Iran takes the necessary steps on the regulatory framework and business environment. Companies are concerned about these issues, in particular on anti-money laundering and countering financing of terrorism and of course, more needs to be done. Cooperation and consultations in the Financial Action Task Force framework should be treated as a priority. Our visit to Iran has served as an opportunity to establish the basis for cooperating and providing assistance in these domains.

Despite all the challenges, the results of the plan are already positive, with a 22% growth in trade between the EU and Iran in the first quarter of 2016, compared to the same period last year. Thirty-three Iranian banks have been reconnected to SWIFT so far. More recently, it was reported that 200 small and medium-sized international banks, including European ones, have started correspondent relationship with Iranian banks. Major banks are becoming more comfortable as they start to comprehend the new rules in practice. To enhance the economic dialogue and cooperation, in October we are planning a European economic mission to Iran with representatives of European SMEs and businesses. As an element of the trade promotion role of the Member States, another promising avenue is the use of national credit insurance companies, which could provide cover and additional reassurance to investors.

All of these issues together form the complex reality. It will still require, of course, some time as the international business community needs to adjust to the new reality of the post-implementation deal. While we cannot force banks or other businesses to take certain decisions in commercial matters, we will continue to be committed to ensuring that Iran can reap the benefit of the plan of action. With that in mind, we can better continue our consultations with the US in order to get as much clarity as possible, continue reaching out to the European business community and provide assistance to Iran’s banking and financial system. Dialogue and persistence are the way forward.

Victor Boştinaru, on behalf of the S&D Group. – Madam President, I would like to tell the Commissioner how glad I was, one year ago, to see a breakthrough on the Iranian nuclear deal after difficult and long negotiations. The EU played a crucial role in this success, and as I said at that time, the deal has to be beneficial to all parties involved. The Joint Comprehensive Plan of Action, adopted in October, can be a significant step forward for the security, stability and development of the entire region. But it remains extremely important that it is implemented thoroughly and in good faith by all partners and all sides as soon as possible.

We should not forget that the significance of this deal extends beyond its technical details: it has been celebrated by the Iranian people, following its conclusion, with the hope that it will improve their living standards. It is essential that we deliver on that. Only successful implementation will allow us to show the benefits of diplomacy and negotiation over the politics of obstructionism and confrontation.

In spite of the partial lifting of sanctions, EU companies still face substantial difficulties in accessing the Iranian market, and this is mostly due to the fact that many US financial sanctions are still in place and have an extra-territorial impact. Much as we are aware of some of the remaining US and regional partners’ concerns on issues such as security, in particular, and the use of ballistic weaponry, it is important to use all our channels of cooperation with the USA in order to remove, or at least find a temporary solution to, the difficulties faced by European companies and to ensure in the long term, together with our Iranian partners, the security and legal certainty of European investments in Iran.

Finally, the Commission should explore, as soon as possible, the adoption of new mechanisms and measures to lessen the dependence of European companies on US credit and insurance institutions.

Marietje Schaake, on behalf of the ALDE Group. – Madam President, Commissioner and colleagues, this debate is about creating more clarity for EU-based companies looking to trade with or invest in Iran after the lifting of sanctions as a result of the nuclear deal. But ongoing as well as new US-based sanctions for human rights violations or to deter Iran’s missile programme – regardless of the validity of those goals, and I think they are valid – have led to uncertainty for European companies. As a result of the extraterritorial impact, an estimated half of interested companies are holding back. The need for financing, insuring and transporting products going to Iran can lead to a chain reaction where banks do not trust that their services, even if fully legal in Europe, will not be punished in the US or by the US: not only billion-dollar fines, but also new visa requirements that hinder access, or undermine trust in being able to access, the US after doing business with Iran.

Since we requested this debate, Secretary Kerry has met with EU-based banks and the question is this: has this sufficiently clarified their concerns, according to the Commission? And what has the Commission or the External Action Service done to address these concerns with US officials to get more predictability and clarity for European companies? And have you engaged in the underlying problem and addressed it with the Iranian authorities – namely the fact that a significant role for the Revolutionary Guard in the Iranian economy hinders the emergence of a truly private sector, and also risks that the benefits after the deal will go to a few and not to the many. Does the current situation of uncertainty jeopardise the deal at all?

Key for our group, and key for the EU to be effective and credible is for us to be able to make our own policies – in tandem with the US when needed, as we successfully did to bring Iran back to the negotiating table – but always independently, based on our own assessments and decisions of which foreign policy tools benefit our interests and, most importantly, our values.

Doru-Claudian Frunzulică (S&D), blue-card question. – Do you not think that the Commission should address the extra-territorial impact of US sanctions with the American officials and make sure that EU companies can do business, in line with EU policies, without fear of violating US sanctions and of possible fines?

Pavel Telička (ALDE). – Madam President, today the Commissioner has given us an answer to the question, which I would say was twofold.

Commissioner, you have given us an answer on the efforts that you personally, the Commission, your colleagues and also Member States’ representatives are making vis-à-vis Iran. I think that it was rich in information. I am sure that you are making an effort. I think that we have a double agenda there. We have got an economic agenda and we still have an agenda that has to do with the quality of ‘democracy’ in Iran, human rights abuse, etc. On that part I must say that I found your response satisfactory.

To be absolutely frank with you, I do have difficulties with the second part of the twofold answer, namely with the US part. You also took somewhat less time in answering that question. You said that there is progress on getting clarity on the guidelines and that there is an effort on the US side. I am sure that this is the case, but the fact is that we do have cases which have concrete implications. I am Czech. I do not come from a country where Airbus would have a production line, but I think that is one really flagrant case, Airbus versus Boeing. Boeing, which clearly started negotiations with Iran much later than Airbus, has signed a deal – I think it was last week – while Airbus has now been waiting for five months for US Treasury clearance. I think that is unacceptable. So we do not just need to hear what efforts are taking place, but we really need results. Tell us how we can assist you, but let us be more concrete on those issues in the future.

Elżbieta Bieńkowska,Member of the Commission. – Madam President, I think this was a very useful exchange and I want to thank all Honourable Members for the clarity of their interventions. I assure you that we are analysing all of the subjects, especially particular cases. Later on I will refer to Airbus-Boeing very briefly. But as far as this debate is concerned, I conclude that we share a common interest in ensuring that the plan of action works for all participants, especially for European companies and businesses, and leads to Iran’s reintegration into the world economy. Let me again reiterate that the EU is fully committed to providing all necessary assistance and the necessary references to the private sector on the lifting of sanctions, both business opportunities in Iran and, of course, defending the interests of European companies.

On Airbus, I can only say that Airbus signed a deal months ago. At the end of January, during the visit of the Iranian President to France, it signed a deal with Iran on 28 January for the export of aircraft. As for Boeing, they only signed a memorandum of understanding, so not a contract, also for the export of aircraft, very recently. So the situation of both companies is almost the same, but with Airbus it is a deal and with Boeing it is just a memorandum of understanding. Of course, we all know that the implementation is an ongoing task and we need to be diligent with our joint efforts, but I will of course pass all of your concerns and your comments to High Representative Mogherini. Again I want to thank you for bringing the topic to the agenda. Hopefully we will also discuss it in the future because it is really important for our European economy.

Ilhan Kyuchyuk (ALDE), in writing. – In January 2016 the Council lifted all nuclear related economic and financial EU sanctions against Iran. This follows verification by the International Atomic Energy Agency (IAEA) on the same date that Iran had implemented the agreed nuclear-related measures as set out in the Joint Comprehensive Plan of Action (JCPOA). The EU has been joined by the US and the UN which also lifted their sanctions against Iran upon verification. However, the US has suspended not terminated its nuclear-related sanctions on Iran while at the same non-nuclear US economic sanctions remain in place, notably the ban on US citizens and companies trading with Iran. Recently, the US imposed fresh sanctions on Iran over an Iranian ballistic missile test. Continuing US sanctions represent a real trade barrier for many European companies which want to access the Iranian market especially since many of them have business activities in the US. The EU should discuss this issue with our American partners in order to find a working solution that will benefit all sides. Trade with Iran is important for the EU, but a transatlantic partnership with the US is vital for the Union and its Member States since it is the largest bilateral trade and investment relationship in the world.